Chapter 183 Options Strategies

  On October 21, Zhongshi began to quietly absorb long copper futures contracts in the market, and also bought bullish options for November in the copper futures options market.

  Although he made a fortune in the copper futures market in the first half of the year, Zhong Shi discovered afterwards that there were many factors of luck in his long position. The first is that the position is too heavy, and if you are not careful, you will become the target of public criticism; the second is that the number of hands you operate is too large, and the number of hands you buy or close every time is more than 500 hands, which will easily cause violent fluctuations in market prices. The signs are too obvious, and it is very likely that someone will be targeted. Fortunately, there were several bulls with strong financial strength in the market at the same time during that time, so he was able to get out in the end.

   This time, Zhongshi wants to operate both options and copper futures contracts together, and the two sides act as horns for each other, raising copper prices again. In terms of options, there is no need to find another broker, because the brokerage company that Brian belongs to has channels for option contracts, which saves him a lot of trouble.

   "The opening price of copper futures is 2,560 US dollars, the price of November call options is 120 US dollars each, and the execution price is 2,650 US dollars." Brian was very professional, and quickly reported the real-time price on the market.

"120 dollars?" Zhong Shi was stunned for a moment, and then realized that this price cannot be said to be high, but it is not considered low, because the price of option contracts is related to the inherent volatility. In the past two or three months, the price of copper futures The price fluctuates little, so the price is still reasonable.

   "Open 20 long futures contracts, the main contract, 2545 US dollars. In terms of options, buy 15 contracts, in November." Zhong Shi thought for a while and decided to look at the market trend first. These contracts will not have an impact on the copper futures market, and are unlikely to be traded even in a short time.

  Brian here was taken aback. He never expected that Zhong Shi's operation would be so "cautious" this time. You must know that Mr. Zhong had hundreds of thousands of contracts at every turn. After being stunned for a while, he still put the quotation on the trading platform.

  Because of the sharp rise in the previous three trading days, the short side had to make efforts to suppress the rising momentum of copper futures, which is also the reason for lower prices in the other two markets. However, some short sellers in the market did not agree with this opening price. They began to rush upwards shortly after the opening. The price of copper futures rose from $2,560 and soon reached $2,570. However, the bears set up a lot of defense here, and the bulls who lacked support quickly understood the intentions of the bears, and began to close a large number of positions at this position after a few upswings were weak, and the trading volume also showed an increasing momentum.

After waiting for a long time, but did not receive any other quotations, Brian had to call Zhong Shi and said in a friendly voice, "Mr. Zhong, do you want to raise the quotation a little bit? The current copper price is around 2570 US dollars, and the price of 2545 is simply impossible." make a deal."

   "Let's wait!" Zhong Shi looked at the trend of the computer and also discovered this situation. He found that although the moving average supported the upward attack of the copper price, in fact the copper price did not break through for a long time, but fell below the 10-day moving average, which made him feel at ease. Seeing Zhong Shi's insistence, Brian couldn't say anything. He could only pray that the price of copper futures would quickly fall to the level of 2,545 US dollars, so that he could get a commission.

God heard his news on this day, and soon the price of copper futures fell back from the position of 2,570 US dollars. After stopping the tentative upward attack of the bulls, the bears began to attack the camp step by step, and the price of copper futures quickly fell back to the opening price 2560 US dollars, not long after, this price was also broken, and then 2550 US dollars, at this price, the bulls made a slight resistance, but the strength was not very strong, and this price was also declared to be broken at the close of the morning.

   Time to continue trading in the afternoon, the price of copper futures reached 2545, Zhongshi's 20 contracts were quickly matched successfully. Brian was still waiting anxiously for Zhongshi to continue the operation, but there was still no news after half a day. He thought the day was over like this, but Zhongshi called again: "Market price, 1000 lots."

Zhong Shi has become more and more patient now. After seeing the bears attacking the camp step by step, he knows that whenever the bears attack a round number, they will place some short orders at the corresponding positions. , but once the bulls make a sudden effort, these empty orders can give them a part of the buffer time.

The immediate copper futures price has reached $2,535, which is the closing price of the previous trading day. This price has completely wiped out all the efforts of the bulls in the previous trading day. The trading volume is all in vain.

  Thinking of this, Zhong Shi hurriedly called Brian, and one time was a market order of 1,000 lots.

  Bryan, who had finally waited for the large amount of entrustment, was refreshed. He immediately picked up the phone and began to match in the market: "1000 lots, 2535 US dollars, long positions...Okay, I bought them all...what, not enough, 2536...2537..."

With the support of 1,000 lots of buy orders, the price of copper futures was supported again at the position of 2,550 US dollars, but then the bulls' offensive disappeared, and at this position, some small lots began to trade again, and the bulls were pulling up by more than 10 After the price fell, it disappeared, and the copper futures price, which had just improved a little, was exposed to the firepower of the bears again.

   "Buy 50 lots, $2,550." When all 1,000 lots were sold, Zhong Shi waited for a while before opening a new position again. The reason why he only opened 50 lots was that he didn't want the short sellers to mistake him for the main force to push up copper futures, and he didn't want the price of copper futures to drop too much, so he opened such a lot without pain.

Even for a mere 50 lots, the margin has reached nearly 500,000 U.S. dollars, which is not a small sum in the eyes of ordinary follow-up traders. As a result, the price of copper futures has been pushed up by two prices. The immediate price was $2,552.

  Brian was stunned. Regarding Zhong Shi's sudden large amount and sudden small amount of operation, he was first surprised, then puzzled, and until now he was completely speechless.

The price of copper futures began to stagnate after reaching 2552 US dollars. After five or six minutes, there was still not much fluctuation. There was no big change, and thousands of new short positions were opened immediately.

How can the small investors who are frequently operating in the market have the ability to take such a large number of contracts? The long buy orders and short exchange orders at the 2550 position were wiped out at a fast speed, and then the copper futures price plummeted downwards. Breaking through $2540 and $2530, it directly rushed to the lowest price of the day at $2527.

  The reason why it is the lowest is because Zhong Shi entered the market again. He saw that the price of copper futures fell to the position of 2535 US dollars, and he had ordered Brian to place a defensive order of 500 lots, with the price at 2530 US dollars. However, because the fall triggered follow-ups, although the number of short positions has been blocked by the above price, the position of 2,530 US dollars is far from being blocked by a mere 500 lots, so the price of copper futures still broke through 2,530 US dollars .

   "1000 lots! Market price! Pull up!" Zhong Shi, who was a little angry, saw that the trend of copper futures was not as he expected, and couldn't help feeling a little unhappy, so he forcefully ordered Brian to open a large lot.

  Hearing Zhong Shi's order, Brian was overjoyed, and without any nonsense, quickly matched in the market.

Two consecutive buy orders totaling 1,500 lots were placed on the market, which finally stopped the downward trend of copper futures and firmly fixed the price at 2,527 US dollars. Then the price of copper futures began to rise, and first quickly cleared the short position and long position of 2,530 US dollars. Change, and then go up to 2540 US dollars, the number of orders entrusted at this position has almost been consumed, and finally the price stays at 2545 US dollars.

   Two consecutive attacks by the bears ended around $2,545, making them realize that, whatever the reason, the bulls' money can only go so far. This price allowed them to see the possibility of continued suppression. During the subsequent trading hours, hundreds of empty orders were thrown to the market again, but every time the price of copper futures was suppressed to 2540 US dollars, they would encounter a strong market in the range of 2530 US dollars. After a few back and forth, the short position stopped and started to close the position at the position of 2530 US dollars to 2539 US dollars. As a result, this liquidation behavior immediately triggered a rebound from the bulls, and the price of copper futures also slowly rose to the Above $2540.

The bears are very depressed. Although they did not try their best, they also know that under the support of the fundamentals, the lower the price of copper futures is suppressed, the greater the rebound will be, because there are countless people waiting to take orders at low positions and build positions. All harm but no benefit.

But what they didn't expect was that today's market that rebounded after falling to a certain price was completely formed by Zhongshi for the option market, because once the price fell, the price of call options would follow, while the price of short options It will rise accordingly, which may attract bearish investors to buy, and is also conducive to the issuance of more bullish options.

However, Zhong Shi cannot allow the price of copper futures to fall too sharply. If the main bulls enter the market at that time, the price of copper futures will inevitably rebound strongly. At that time, all his efforts will be in vain, and it will cost a lot more to absorb bottom positions and options funds.

   In terms of copper futures contracts, Zhong Shi only closed some small positions in the end, and continued to keep 2,000 long positions. This part of the contract is concentrated in November, and he intends to raise the price of copper futures again.

  In terms of options, due to the market decline on this day, the price of copper bullish options also dropped slightly. Zhongshi bought a total of 1,243 options, with an average price of 117 US dollars per contract, and a total cost of about 150,000 US dollars. This small amount of money was just offset by the profit of some of the positions he closed out. That is to say, Zhong Shi's operation this day was just filling thousands of option contracts out of thin air.

In the end, the price stayed at $2,544 on this day, and fell by $33 all day. The number of trading lots was close to 70,000. Most of them were bullish positions from the previous day. The main bulls did not show up. The intention to close positions, that is to say, they are not satisfied with the current copper price.

After finishing the transaction, Zhong Shi bought a direct flight ticket to London. His sophomore studies have ended in early October. After hastily packed his luggage, he will meet up with Andrew and others there to make another big show in the copper futures market. skill.

   Thanks for the two monthly tickets of Dragon War Ghost! Thanks for the tip that made me think! I hope more book friends can support this book, thank you~

  

  

  (end of this chapter)